What section of the Degree Wellness Franchise Agreement addresses renewal or extension of the term?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Length of franchise term | Section 2.1 | 10 years |
| b. Renewal or extension of the term | Section 2.4 | Additional terms of 10 years |
| c. Requirements for you to renew or extend | Section 2.4 | The term "renewal" means that you will be granted a franchise for 1 additional term, equal in length to the initial term, subject to your compliance with all the terms of the Franchise Agreement and all other agreements between you and us, |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 49–59)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, the renewal or extension of the franchise term is addressed in Section 2.4 of the Franchise Agreement. This section outlines that franchisees may be granted an additional term of 10 years, provided they comply with all the terms and conditions outlined in the Franchise Agreement and any other agreements between the franchisee and Degree Wellness.
This is a fairly standard renewal term in the franchise industry. It is important to note that while the initial franchise agreement has a term of 10 years, the renewal is contingent upon the franchisee's adherence to the agreement's terms. This means that a franchisee who has not complied with the agreement may not be eligible for renewal.
Prospective Degree Wellness franchisees should carefully review Section 2.4 of the Franchise Agreement to fully understand the requirements for renewal. This includes understanding what constitutes compliance with the agreement and what steps the franchisee needs to take to initiate the renewal process. Additionally, franchisees should be aware that Degree Wellness may present a new franchise agreement with materially different terms and conditions at the time of renewal, which the franchisee must accept to continue operating.